With tax reporting deadlines rapidly approaching, Greatland is reminding all businesses that its suite of Affordable Care Act (ACA) reporting capabilities includes free tools, checklists and guidelines that make compliance less complicated. While there has been much speculation, ACA reporting is still required this year and companies will be expected to comply or risk high penalties.

“Even though we are in our third year of ACA reporting, businesses continue to struggle to understand the rules and deadlines associated with the Affordable Care Act,” said Greatland CEO Bob Nault. “Greatland’s team of experts understand the regulations and can provide the filing features and help necessary to ensure reporting is completed on time and businesses remain in compliance.”

ACA Code Generator:

One of the largest areas of confusion for businesses is the completion of Lines 14-16 on Form 1095-C, the form used to provide employees with information about their medical benefits. This section has proven to be so unclear that many businesses pay high fees to have a third party calculate the required codes for them. Greatland’s team of ACA compliance experts created a free ACA Code Generator tool help demystify the process, allowing businesses to complete this critical step on their own. Simply answer a few questions and this tool will guide you towards the correct codes to enter in Lines 14-16 of Form 1095-C.

Who Needs to File?

Similar to past years, employers with 50 or more full-time employees (including full-time equivalent employees) and all self-insured employers regardless of size must report healthcare coverage information to employees and the IRS.

Full-time employees are those who worked an average of 30 hours or more per week for more than 120 days in a year. Using this guideline, you may have less than 50 full-time employees, but meet the requirements for ACA reporting. Healthcare.gov offers assistance, including a Full-time Equivalent Employee Calculator, to help determine filing needs.

When to File:

Due Date

Requirements

January 31, 2018

Form 1095 copies to recipients and/or employees

February 28, 2018

Paper copies of form 1095 to IRS

April 2, 2018

E-File form 1095 to IRS

Requirements

If you are an insurance company or business that is required to report healthcare coverage, you will need to file one of two form types to the federal government. Both paper and e-file are acceptable filing methods, with the e-file threshold being 250 forms.

1095-B: The Internal Revenue Code (IRC) Section 6055 outlines the requirements for 1095-B reporting. Form 1095-B must be issued by the insurance company (or self-insured employer) to the individual and the IRS as proof of coverage. Form 1094-B is the related transmittal sent to the IRS.

1095-C IRC Section 6056 defines the reporting requirements for large employers (50 or more full-time employees including full-time equivalent employees) to provide their employees with documentation outlining any applicable offer of health coverage. Form 1095-C is a statement issued by employers with 50 or more full time employees (including FTEs) to employees and the IRS. Form 1094-C is the related transmittal sent to the IRS.

Forms 1095-B and C require some or all of the following data: employer ID numbers (EIN), taxpayer identification numbers (TIN) of employees/recipients and their dependents, addresses, and months of coverage. There are no state reporting requirements associated with the 1095-B or 1095-C.

IRS Announces ACA Filing Extension for 2018

What Happens if Your Business Doesn’t File?

Generally, businesses understand the ins and outs of tax reporting for traditional employees, but what your business might not be aware of is the importance and process of filing taxes for contractors.